Dividend Tax

[ashfaque ali]

Dividend of mutual funds is fax free in the hands of investor under which act

[DEV KUMAR KOTHARI]

Under .10 of the income-tax Act,1961 only when the mutual fund has paid dividend distribution tax u/s 115R of the same Act.

AI Summary

Dividend taxation: investor exemption applies only where the mutual fund has paid Dividend Distribution Tax, affecting investor taxability. Dividend receipts from mutual funds are exempt under section 10 of the Income-tax Act, 1961 only where the mutual fund has paid the Dividend Distribution Tax under section 115R; investor tax-exemption depends on the fund's discharge of that distribution-level tax.